The failure of Torwood Timber Systems has led to sister company Trade Style Cabinets going into receivership.
Joint receivers from KPMG have already made 50 of Trade Style’s 80 workers redundant.
The Glasgow-based firm, which manufactures high-quality kitchen, bedroom and bathroom furniture under the English Rose and Wrighton international brands, supplied independent retailers and housebuilders.
“Despite having an excellent reputation in its market place, Trade Style Cabinets, like many businesses, has suffered from the economic slowdown which has significantly impacted upon housebuilders over the last 18 months,” said Blair Nimmo, head of restructuring for KPMG in Scotland.
“This led to trading losses being sustained during 2009 and cash flow pressures which were exacerbated when its associated company, Torwood Timber Systems Ltd, was placed into administration on March 25.”
Trade Style, which operates from a wholly-owned 50,000ft² factory on the Easter Queenslie Industrial Estate, reported a turnover of £5.5m for the year ended January 31, 2010, compared to £7.8m a year ago.
The joint receivers are inviting offers for any aspect or assets of the business. For more information contact Tony Friar or Alistair McAlinden at KPMG on 0141 300 5538.
